First Regular Session
              Sixty-ninth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 13-0211.01 Gregg Fraser x4325   HOUSE BILL 13-1120
                    HOUSE SPONSORSHIP
 Dore,
 
                   SENATE SPONSORSHIP
 (None),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the elimination of a perpetual conservation
            easement in gross that has been disputed for purposes
            of claiming a credit against state income taxes.
       
       
                           Bill Summary
       
            (Note: This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            Under current law, a state income tax credit is allowed for a
       portion of the value of a perpetual conservation easement that is granted
       by a taxpayer on real property located in Colorado. The bill allows the
       easement to be eliminated if the easement is determined to be invalid for
       purposes of claiming the tax credit or if the amount of the tax credit is
       reduced. The donor is required to repay any taxes, interest, and penalties
       owed in connection with claiming the credit, and, in the case of a credit
       that was reduced, the donor is required to repay a portion of any amount
       provided as consideration for the easement.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, amend 38-30.5-107
       as follows:
            38-30.5-107.  Release - termination. (1)  Conservation easements
       in gross may, in whole or in part, be released, terminated, extinguished,
       or abandoned by merger with the underlying fee interest in the servient
       land or water rights or in any other manner in which easements may be
       lawfully terminated, released, extinguished, or abandoned.
            (2)  A conservation easement in gross shall be released,
       terminated, or extinguished if a final determination by the
       department of revenue, a final judgement of a court of
       competent jurisdiction, or a voluntary settlement agreement to
       which the donor of the easement is a party determines that:
            (a)  The easement is invalid or the donation of the
       easement is otherwise not eligible to qualify as a qualified
       conservation contribution for the purposes of claiming a state
       income tax credit pursuant to section 39-22-522.5, C.R.S.; or
            (b)  The amount of a credit originally claimed by a
       taxpayer pursuant to section 39-22-522.5, C.R.S., was disputed by
       the department of revenue and subsequently reduced.
            (3)  The release, termination, or extinguishment of an
       easement pursuant to subsection (2) of this section is
       conditioned upon the repayment of any amounts of taxes,
       interest, and penalties due and owing the state from the donor
       of the easement as a result of the denial or reduction in the
       amount of the tax credit claimed. The release, termination, or
       extinguishment of an easement pursuant to paragraph (b) of
       subsection (2) of this section is further conditioned upon the
       repayment of the amount of any consideration originally paid
       by or on behalf of the grantee for the easement, reduced in the
       same proportion that the amount of the credit originally
       claimed by the taxpayer pursuant to section 39-22-522.5, C.R.S.,
       was reduced.
            SECTION 2.  Act subject to petition - effective date -
       applicability. (1)  This act takes effect at 12:01 a.m. on the day following
       the expiration of the ninety-day period after final adjournment of the
       general assembly (August 7, 2013, if adjournment sine die is on May 8,
       2013); except that, if a referendum petition is filed pursuant to section 1
       (3) of article V of the state constitution against this act or an item, section,
       or part of this act within such period, then the act, item, section, or part
       will not take effect unless approved by the people at the general election
       to be held in November 2014 and, in such case, will take effect on the
       date of the official declaration of the vote thereon by the governor.
            (2)  This act applies to conservation easements granted prior to, on,
       or after the applicable effective date of this act.